Gold, Bitcoin Under Pressure
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold and Bitcoin have seen some selling pressure over the past couple of days. Gold peaked on Monday and Bitcoin late on Wednesday. The key reversal patterns were unmistakable in both. The metal and the crypto both made recent highs and had dramatic sell-offs from the highs.
On Monday, as it looked like gold was going to the moon and traded as high as $1,442. It then fell apart, falling about 3% since. Our target remains $1,380-$1,390, which should be the lows of the current down move. In identical fashion, Bitcoin was exploding on Wednesday, making three-year highs before reversing 2% from the highs.
These patterns are common in all markets. Traders and investors chase markets higher on the fear of missing out or short covering. Once markets regain equilibrium, they usually consolidate, looking for support or resistance. In this case, both gold and Bitcoin are searching for support. Both markets should resume their upward momentum after finding support -- gold at $1,380-$1,390 and Bitcoin around $10,000.